Higher corn imports are being considered to cushion livestock and poultry producers from rising feed costs and looming supply risks.
The Department of Agriculture (DA) has proposed raising the corn minimum access volume (MAV) to 500,000 tons, more than double the current 216,940 tons.
Agriculture Secretary Francisco Tiu Laurel Jr said the goal is to stabilize feed costs and shield livestock and poultry producers from supply risks. The plan was developed in consultation with stakeholders from the corn, livestock, and poultry industries before submission to the MAV Management Committee.
Mr Tiu Laurel explained that the increase anticipates possible supply tightness from weather-related risks, particularly a stronger El Niño later this year, and escalating production costs such as fertilizer and logistics.
Industry groups have warned that corn production could face headwinds from elevated fertilizer costs and reduced planting intentions among growers. The Philippine Statistics Authority estimated 2025 corn output at 8.3 million tons, but officials fear this may not be enough to offset risks.
The DA also cited volatile energy markets and disruptions in shipping routes around the Strait of Hormuz, which have pushed up freight and fertilizer prices. These factors have raised production costs across the farm sector.
Yellow corn is a critical feed ingredient for livestock and poultry, representing one of the largest cost components in raising animals. Any sustained increase in feed prices directly affects the cost of pork, chicken, eggs, and other staples.
After months of subdued inflation, price pressures returned in March as Middle East tensions drove global oil prices higher. Philippine headline inflation rose to 4.1% in March, surged to 7.2% in April, and eased slightly to 6.8% in May.
Mr Tiu Laurel emphasized that stabilizing feed costs is essential to temper food price pressures and protect household purchasing power.
The DA stressed that the proposed MAV expansion is a temporary safeguard, not a permanent policy shift. Imports would be activated only when supply conditions warrant, ensuring local corn farmers are not unnecessarily displaced.
“This is a calibrated contingency measure to protect both producers and consumers,” Mr Tiu Laurel said. The department underscored its commitment to balancing domestic production support with the need to maintain food affordability.
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